Broker snap: British Land is 'excellent proposition'

18th May 2010 08:56

Full-year results from real estate big hitter British Land impressed Panmure Gordon enough to call it "excellent investment proposition at current levels".The broker repeated 'buy' advice after the company reported earnings per share (EPS) of 28.4p, a dividend (DPS) of 26p, and net asset value (NAV) of 504p. It said the 27% year-on-year increase in NAV, largely due to a valuation increase on yieldcompression, beat its own forecast of 463p and the market consensus of 477p. "We see this as an asset backed business, with a strong balance sheet, and excellent turnover and profit visibility," it told clients in a note this morning. "The stock offers a 6.0% dividend yield and is trading at a 16% discount to our March 2011E NAV.""British Land has the flexibility and firepower to take advantage of market conditions and make property acquisitions, which will provide additional growth in EPS and DPS beyond that which is forecast in our models."